Benue State is set to become Nigeria’s first producer of coal bed methane (CBM), an unconventional form of natural gas extracted from coal, as part of the National Gas Expansion Programme (NGEP).
Federal Government’s Commitment to Gas Expansion
The Chairman of NGEP, Prof. Mohammed Ibrahim, announced this after a meeting with Benue State Governor, Hyacinth Alia, emphasizing the Federal Government’s commitment to expanding gas availability for domestic use, transportation, and industrialization.
Alternative Gas Source – Instead of relying solely on conventional hydrocarbon reserves, the government is tapping into coal bed methane, pioneering a new energy source in Nigeria.
Economic Benefits for Benue – According to Dr. Emmanuel Chenge, Chairman of the State Gas Expansion Programme, Benue’s inclusion in the league of gas-producing states will boost revenue generation, attract investment, and create jobs.
Nigeria’s $20 Billion Gas Infrastructure Need
Despite having one of the largest gas reserves in the world, Nigeria faces challenges due to insufficient investment in gas infrastructure.
NEITI’s Estimate – Dr. Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industry Transparency Initiative (NEITI), stated that Nigeria needs $20 billion annually for the next 10 years to develop its gas infrastructure.
Federal Initiatives – The government is accelerating gas utilization through programs like:
- Presidential Compressed Natural Gas Initiative (PCNGI) – Over $450 million invested in Nigeria’s CNG value chain.
- National Gas Expansion Programme (NGEP) – Driving alternative gas exploration and utilization across the country.
With Benue State pioneering coal-derived gas production, Nigeria is taking a bold step towards energy diversification, economic growth, and cleaner energy solutions.
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